We recently published a list of Top 10 AI News Everyone is Talking About. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other top AI news everyone is talking about.
Jim Cramer in a latest program on CNBC talked about the ongoing “rebellion” against the data center and the impact of tariffs on the broader market. Cramer said that data centers have been a key story in the stock market for months but now it’s losing steam due to a variety of factors. He also mentioned the weakening economic indicators.
“I know these tariffs have people on edge. Consumer confidence indicators have just plummeted. Interest rates are sinking for fear of an economy gone soft. The key 10-year Treasury yield is back to where it was in mid-December when many thought we were looking at many more rate cuts than we’ve gotten. We have had to put rate cuts talk on hold. Now it’s right back because there’s a newfound paralysis—too many things happening at once, scaring people.”
Cramer said that the “seeds of doubt” about data center chip demand were sown following the launch of DeepSeek and the market is still reeling from its effects.
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For this article we picked 10 AI stocks the market is buzzing about these days. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Investors: 99
Jim Cramer in a latest program on CNBC said Tesla, Inc. (NASDAQ:TSLA) shares rallied after the company’s quarterly results not because of the numbers, but because of Elon Musk’s pitches and “showmanship.” Cramer said he “believes” the claims and promises made by Musk about autonomous driving.
“Tesla (NASDAQ:TSLA) actually rallied almost 3% today after reporting numbers that were seemingly disappointing. The core business isn’t doing that well, but nobody seemed to care. Well, that’s because Elon Musk knows what his investors want, and it’s not great auto numbers from 2024. They want his vision for the future. Musk, a nonlinear thinker with terrific charisma and showmanship, knows how to come up with incredible ideas, pitch them, and most importantly, execute them. So, Tesla (NASDAQ:TSLA) not rallying because of the numbers, which were indeed not that good. It’s rallying because of Musk’s extraordinary performance on the conference call.”
Cramer said Optimus robots is one of the key products he’s excited about and praised Musk’s track record:
“When talking about Robo-taxi and self-driving, Musk tells us not to worry—the tipping point is almost at hand. It’s simple: when we know for a fact that autonomous cars are much safer than humans, something he says will be obvious in a short period of time, then we all go autonomous. If any other CEO in America tried to pull off what he did last night—reporting a not-so-great quarter and then trying to dazzle shareholders with a grand vision of the future—they’d all be laughed out of the industry. But Musk has such an incredible track record that when he says this stuff, people believe him. And I don’t blame them; I believe him too. He’s made his investors so much money over the years, how can he not deserve the benefit of the doubt?”
Tsai Capital stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) (TSLA—Year of First Purchase: 2020) We’ve owned Tesla since February 2020 and initially paid an average of about $41.66 per share5 . Tesla is a leading AI company that has formidable competitive advantages across various sectors, including electric vehicles, software, and energy storage.
A true outlier, Tesla operates in an entirely unconventional way, often creating market confusion and attracting criticism from short sellers and from those who mistake the company for what it is fundamentally not—a traditional car manufacturer.
Under the visionary leadership of Elon Musk, Tesla has adopted a scale-economies-shared business model, deliberately lowering prices, enhancing the customer value proposition, driving adoption, and expanding the total addressable market…” (Click here to read the full text)
Overall, TSLA ranks 6th on our list of top AI news everyone is talking about. While we acknowledge the potential of TSLA as investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
